CyberShop.com Announces Fourth Quarter Net Revenue of $4.2 Million - Biggest Quarter in Company History.Business Editors JERSEY CITY, N.J.--(BUSINESS WIRE)--Feb. 1, 2000 Online Retailer Expects to Report 32% Gross Margin - Among the Highest of Any Publicly Traded E-tailers CyberShop.com(R), Inc. (Nasdaq: CYSP), the leading online off-price retailer of designer apparel, home furnishings furnishings the extra type or quantity of hair on the head, tail, ears or legs, specified for a particular breed. For example, the feathers in setters, the beard in Bearded collies, the eyebrows in Schnauzers. and electronics, announced today unaudited financial results for its fourth quarter, ended December 31, 1999. Net revenues for the quarter were approximately $4.2 million and net revenues for the year ended were approximately $10.0 million, doubling revenues from 1998. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , with so much scrutiny on e-tailers' bottom line, CyberShop.com increased gross margins to 32% for the fourth quarter versus 23% for the same quarter in 1998. CyberShop.com has shown steady margin improvement to 30% for the full year, from 23% in 1998 full year. Additionally, CyberShop.com expects operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. to improve by approximately 30% for the quarter over the fourth quarter of last year. (Operating losses are defined as net income before acquisition related and one-time charges, interest income and minority interest.) More cost-effective marketing contributed to this improvement; CyberShop.com generated nearly $2 of net revenue for each marketing dollar spent. CyberShop.com finished the year with inventory levels of approximately $400,000, resulting in fourth quarter turns of 4X and full year turns of 15X. &uot;We are very pleased with our financial performance and believe our balanced approach in growing our business towards profitability versus growth at any cost will allow us to build a more sustainable business A business is sustainable if it has adapted its practices for the use of renewable resources and holds itself accountable for the environmental and human rights impacts of its activities. model long term,&uot; said Jeff Tauber, Chairman &CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . During the fourth quarter, CyberShop.com's customer counts increased to 431,000. Additionally, in the fourth quarter, CyberShop.com processed approximately 40,000 orders with a $134 average order size. &uot;We believe that growth at any cost is not sustainable for any dot com dot com - com , and are very pleased with the way our marketing drove traffic and sales for the holiday selling season&uot;, said Tauber. &uot;Ultimately, we were able to show significant top line growth while not sacrificing the bottom line.&uot; Given the preliminary nature of these results, CyberShop.com also announced today that it has moved today's scheduled conference call to a more appropriate time which will be when the final audited results are expected to be released February 14. About CyberShop.com CyberShop.com, a leading online retailer, operates three online stores. The flagship store located at http://www.cybershop.com offers designer and brand-name apparel, home accessories, toys, gifts and watches at deep discounts of 20%-80% off traditional retail prices. electronics.Net, launched in 1998, is located at http://www.electronics.net and offers a broad assortment assortment /as·sort·ment/ (ah-sort´ment) the random distribution of nonhomologous chromosomes to daughter cells in metaphase of the first meiotic division. as·sort·ment n. of electronic brand name merchandise including television and video equipment, home and car audio equipment, small appliances Small appliance refers to a class of home appliances that are semi-portable or which are used on tabletops, countertops, or other platforms. Such items are contrasted with major appliances, which are typically fixtures that cannot be easily moved. , home office equipment and related accessories. CyberShop.com operates a third site, a direct to consumer marketer of high quality merchandise in personal care, health and home accessories. These products are promoted on http://tools.cybershop.com and through print media campaigns in national consumer magazines. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. This announcement contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties that include, among others, CyberShop.com's limited operating history, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, competition, risks associated with system development and operation risks, management of potential growth and risks of new business areas, and strategic alliances. |
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